Contents
- Headlines
- Forecasting Tengah Town
- Is $1m HDB Becoming Ehe Norm?
- Predicting HDB Resale Prices
- Visualizations
- Remaking Our Heartland
- Relationship Between POI and Resale Price
- Why Prices Drastically Increase From 2007 Onwards
- Value Comparison Between Mature Towns And Non-Mature Towns
- Does Premium/Non-standard HDBs account for high resale value?
- Compare HDB Median Resale Price Per Town
Headlines
The R Markdown report will comprehensively cover the aspects of HDB Resale Prices from the early 90s to the current year. Through analysis of the dataset, we will produce quality and informative insights, graphs accompanying the insights as well as a predictive model. We hope that through this document, it will aid users in their decision making process and other general purposes.
Will Tengah Property Prices See The Same Rise As Punggol?
When Punggol was first unveiled 1996 by former Prime Minister, Goh Chok Tong, there was a vision to make it the Waterfront Town in the 21st Century. Located in the northeast region of Singapore, bordered by the Singapore shoreline as as well as the Strait of Johor, there was an ambitious plan to transform the old village of Punggol into a waterfront town with residential housing occupying along the rivers and coastal areas.
Subsequently in 2007, Punggol was selected as one of the pilot towns under the Remaking Our Heartland (ROH) programme. It included a master plan to further realise the vision of Punggol as a waterfront town. One of the plan includes a man-made waterway that goes through the town, bringing in opportunities for authentic waterfront living and exciting water-based activities.
Come 2017, just 10 years after the ROH programme was introduced, prices have skyrocketted to nearly $900,000. This mark a new milestone in the HDB resale market for the suburban town in the region.
The table above shows the changes in average resale prices of Punggol from 2007 to 2017 and per flat type from 2 Room flats to Executive flats. Due to Punggol’s early age, the resale value of 2 Room flats and 3 Room flats is not available until 2015.
From the table we can see that on average, there has been a 50% increase in resale value between 2007 and 2017. 4 Room HDB has seen an increase of about 71%, while 5 Room 49% and Executive flats 41%.
The graph shows the resale price per flat type and total average year-to-year. As the town continue to mature, new amenities and points of interest are built and formed. So it is not surprising to see the resale price to gradually rise. It is interesting however, to see ROH play a part from 2007 onwards as it was the year it started.
Will Tengah experience the same growth?
HDB’s newest town in over 20 years since Punggol, Tengah will no doubt be the new town to conquer the headlines in years to come. Located in the west, it is bounded by Choa Chu Kang and Jurong East. It will be HDB first ever car free and nature centric town. HDB envisioned Tengah to be a “Forest Town”, designed to be sustainable, green and full of smart features. There are already sayings that Tengah will be the next Punggol - but is it really?
Tengah, like Punggol started off with a blank state but Punggol town has established itself as a modern digital town with plans to make it the next digital district. While Tengah has position itself a green town, those who likes nature and lush greenery. Therefore the appeals of each town are different. It took years for Punggol town to be built up as it is today and it could take the same for Tengah to do the same. Furthermore, the Jurong Region Line will potentially inject capital appreciation of the area of Tengah.
All in all, with Punggol featuring a Waterfront Living, Punggol Digital District and North East Line MRT Line it is able to command a high resale price. In time with Tengah featuring a Forest Town, Jurong Innovation District and Jurong Region MRT Line, we believe it too can provide a near similar growth or even higher as Jurong East is envisioned to be Singapore’s second CBD.
Will million dollar HDB flats be new new norm?
Over the years, HDB flats reaching close or at the $1 million mark has dominated the property headlines. Seeing HDB flats sold at that price seems bewildering. Many will wonder whether HDB mean affordable housing anymore? And will we expect to see million dollar HDB becoming the norm, potentially competiting with the Private Property market?
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======= >>>>>>> 0c7596d58a9a3199158bd78b97219dc0fa44abb4R Markdown
This is an R Markdown document. Markdown is a simple formatting syntax for authoring HTML, PDF, and MS Word documents. For more details on using R Markdown see http://rmarkdown.rstudio.com.
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<<<<<<< HEADsummary(cars)## speed dist
## Min. : 4.0 Min. : 2.00
## 1st Qu.:12.0 1st Qu.: 26.00
## Median :15.0 Median : 36.00
## Mean :15.4 Mean : 42.98
## 3rd Qu.:19.0 3rd Qu.: 56.00
## Max. :25.0 Max. :120.00Including Plots
You can also embed plots, for example:
<<<<<<< HEAD
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Map of Singapore
This is an interactive map showing the different towns and their regions.
maybe can add white polygon behind layer so it’s clearer and add mrt station names when highlight above marker
Note that the echo = FALSE parameter was added to the code chunk to prevent printing of the R code that generated the plot.
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
Predictive Model
Still trying to make it work…
Visualizations
Visualization 1
“Remaking our Heartland” is a program by HDB to renew and further develop existing HDB towns and estates, and to ensure sustainability and vibrancy of the HDB heartlands. This generally includes building more ammenities within the neighbourhood.This stacked bar graph shows the differences in average prices of flats that have undergone the “Remaking our Heartland” program. A stacked bar chart was chosen to better show the relative difference between the prices. The graph is also sorted from highest to lowest Price after ROH.
The years used to compute Prices before ROH are from 1990 to 1 year before ROH, and the years used to compute Prices after ROH are from the year of their respective ROH commencement year to 2017.
You may hover your mouse above the bars to see the exact average price of these flats.
All flats that were improved under the ROH program have seen an increase in average resale price over the years and thus appreciated in value due to ROH. Top 3 Towns that show greatest appreciation, from most to least, are Queenstown, Marine Parade and Toa Payoh.
This line graph drills down to show the increase in resale prices of flats in Queenstown, which showed the greatest price increase due to ROH.
Queenstown showed the most aggressive price increase during 2006-2008. This may be credited due to ROH-Queenstown which took place from 2007 onwards and resale prices showed an upward trend for the next 10 years till 2017.
Visualization 2
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.## `geom_smooth()` using method = 'loess' and formula 'y ~ x'
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Visualization 3
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The boxplot graph above depicts the resale prices of HDBs in mature towns per flat type. 5-room flats are seen to have the highest resale price over 27 years as compared to the other flat types, reaching a maximum resale price of 1.18 million followed by Executive and 3-room flat types. On the other hand, 3-room flats are seen to have the lowest resale price over 27 years, reaching a minimum of 7,500 over 27 years followed by 2-room and 4-room flat types.
The boxplot graph above depicts the resale prices of HDBs in non-mature towns per flat type. Executive flats are seen to have the highest resale price over 27 years as compared to the other flat types, reaching a maximum resale price of 938,000 followed by 5-room and 4-room flat types. On the other hand, 2-room flats are seen to have the lowest resale price over 27 years, reaching a minimum of 16,800 over 27 years followed by 3-room and 4-room flat types.
The column bar graph above depicts the difference in average resale prices overall between Mature and Non-Mature Estates over 27 years. HDB flats in mature estates are seen to be the most expensive as they are resold at an average resale price of 454873.76 while non-mature estates are seen to be cheaper as they are resold lower at 413398.32 on average.Visualization 5
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